Is There No Hope for Intel Anymore?

As evident by Intel’s (INTC) latest quarterly report, the company is facing a lot of trouble amid the slowing PC market. Intel decided to lay off a considerable portion of its workforce. This indicates that the company is finding it difficult to fund growth and is cutting back costs to boost its earnings.

However, there is still some hope for Intel investors. Intel is about to change the computing background. Intel plays a significant role in creating Micron’s hybrid memory cube technology.

In other words, when you combine spacious storage class memory and processor into a single, high-bandwidth package, performance will definitely surge to levels that modify the computing background.

Due to this, PC will disappear for the reason that your smartphone will have plenty of energy efficiency and computing power. In this case, Microsoft has formerly developed Continuum so that display and input can stream through various kinds of devices.

The only problem in this model was about gaming, which is already being folded into Intel’s Xeon chips. With the help of 3D XPoint memory, the dissimilarities become even smaller, as the memory correction is shifted from the processor into the memory. While the mobile segment might use a Xeon core, there is no reason left to conserve the desktop computing segment to any further extent.

On the other hand, the client computing group now accounts for a single group that generates processors with storage class memory, satisfying the requirements of almost 90 percent of the personal computing market with very petite diversity, and the leftover 10 percent will be gaming and CAD workstations that are satisfied by the Xeon from the Data Center Group.

Intel’s new structure represents the Non-Volatile Solutions Group. Non-Volatile clearly indicates that the company is not focusing on DRAM at all. This suggests that the performance of 3D XPoint will be high. Bearing in mind the cost structure, if 3D XPoint read speeds are close or similar to that of DRAM, and all writes move into the rapid eDRAM cache, then the necessity for single-handedly DRAM has just disappeared.

Conclusion

Although Intel has been trying hard to diversify, its short term success depends on the 3D XPoint. The chipmaker has placed all its egg in one basket and investors should closely follow the market performance of the 3D XPoint to know where Intel’s stock is going to move in the next few months.